Leading Growth Driver in the Generative AI in IoT Market in 2025: Escalating Demand For Anomaly Detection In Iot Networks Fuels Growth In generative AI Solutions Driver's Influence

What Are the Market Size and Growth Forecast for the Generative AI in IoT Market?
The market size of generative AI in IoT has seen a significant boost in the last few years. It is predicted to expand from $1.58 billion in 2024 to $2.03 billion in 2025, demonstrating a Compound Annual Growth Rate (CAGR) of 28.3%. The historical growth has been driven by factors such as heightened adoption of IoT devices, increased demand for improved security, the necessity for better operational efficiency, advancements in AI technology, escalation in data volumes, a greater emphasis on predictive maintenance, and the development of cloud computing.

We anticipate a substantial rise in the size of the generative AI in IoT market in the ensuing years. This increase is slated to reach $5.47 billion in 2029 with a compound annual growth rate (CAGR) of 28.1%. Factors contributing to growth within the forecast period include escalating IoT system intricacy, fusion of AI and edge computing, expansion of smart city initiatives, increased funding on AI R&D, advancements in the field of natural language processing, an increased focus on customization, and improved AI regulations and standards. The forecast period will also witness notable trends such as advancements in AI algorithms, merging of generative AI with 5g technology, rise in autonomous systems, broadening of AI-powered analytics, introduction of edge AI solutions, an increase in AI-driven customization features, and a focus on energy efficiency.

What Is Contributing to the Growth of the Generative AI in IoT Market?
The surging need for anomaly detection in IoT networks is likely to drive the expansion of generative AI in the IoT market. Anomaly detection in IoT networks involves finding unusual patterns or behaviors in the data obtained from Internet of Things devices. This rising demand stems from the requirement for improved security, early issue identification, and the upkeep of the reliability and effectiveness of linked systems. Generative AI in IoT networks boosts anomaly detection by employing sophisticated algorithms to spot unusual patterns and behaviors. This enhances security, minimizes downtime, maximizes system performance, and aids in preventative maintenance and decision-making. For example, a report by Check Point, an Israel-based software security provider, in April 2023 revealed a 41% surge in the average number of weekly attacks per organization targeting IoT devices in the first two months of 2023 compared to 2022. On average, 54% of organizations confront attempted cyber-attacks on IoT devices each week. Consequently, the burgeoning demand for anomaly detection in IoT networks is fueling the development of AI in the IoT market.

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Which Key Market Leaders Are Driving Generative AI in IoT Industry Growth?
Major companies operating in the generative AI in IoT market are Google LLC, Microsoft Corporation, Dell Technologies Inc., Bosch Group, Huawei Technologies Co. Ltd., Amazon Web Services Inc. (AWS), Siemens AG, General Electric Company (GE), Intel Corporation, accenture* plc, International Business Machines Corporation (IBM), Cisco Systems Inc., Qualcomm Incorporated, Oracle Corporation, Schneider Electric SE, Honeywell International Inc., SAP SE, Fujitsu Limited, NVIDIA Corporation, Keysight Technologies Inc, Fortinet, Inc, Hitachi Vantara LLC, PTC Inc., Palantir Technologies Inc., Temenos AG, C3.AI inc.

What Are the Emerging Trends in the Generative AI in IoT Industry?
Corporations that are significant players in the generative AI in IoT market have made strides in producing high-tech solutions, like AI IoT security assistants, by using generative AI technology to boost operational productivity, streamline intricate tasks, and fill the cybersecurity expertise deficit. These AI-powered security assistants enhance cybersecurity measures by conducting real-time security event analyses, automating the identification of threats, and creating actionable insights for risk reduction. A case in point is Fortinet Inc., an American cybersecurity firm, who in May 2024 launched its debut generative AI IoT security assistant in an effort to expand its GenAI network and security operations functionalities. This newly launched service incorporates FortiAI, Fortinet's sophisticated context-aware AI assistant, aimed at refining their network and security management. The AI assistant is designed to comprehend natural language inquiries, aiding IT and security personnel to accomplish tasks like GenAI-assisted scripting, IoT vulnerability identification, and threat analysis simplification. This product bridges the gap in cybersecurity skills and enhances operations by simplifying and speeding up complex tasks.

What Are the Main Segments in the Generative AI in IoT Market?
The generative AI in IoT market covered in this report is segmented -

1) By Technology Providers: Established AI Technology Companies, IoT Platform Providers, Cloud Service Providers, Specialized Generative AI Startups
2) By Deployment Mode: On Device, Cloud Based
3) By Application: Anomaly Detection, Predictive Maintenance, Adaptive Control, Resource Optimization, Personalized Services, Contextual Decision Making
4) By Industry Vertical: Manufacturing, Healthcare, Transportation, Agriculture, Other Industries

Subsegments:
1) By Established AI Technology Companies: Major AI Solution Providers, Global Tech Enterprises, AI-Focused Research Labs, AI Hardware Providers
2) By IoT Platform Providers: End-to-End IoT Platform Vendors, IoT Device Management Providers, Edge Computing Platform Providers, Connectivity Management Solutions
3) By Cloud Service Providers: Cloud Infrastructure Providers, Cloud-Based AI And ML Service Providers, Hybrid Cloud Solution Providers
4) By Specialized Generative AI Startups: Niche AI Startups Focused On IoT Integration, Emerging AI-Driven IoT Solutions Companies, Vertical-Specific AI Startups, Edge AI And Analytics Startups

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Which Geographic Area Leads the Generative AI in IoT Market?
North America was the largest region in the generative AI in IoT market in 2024. The regions covered in the generative AI in IoT market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

What Is Covered In The Generative AI in IoT Global Market Report?

- Market Size Analysis: Analyze the Generative AI in IoT Market size by key regions, countries, product types, and applications.
- Market Segmentation Analysis: Identify various subsegments within the Generative AI in IoT Market for effective categorization.
- Key Player Focus: Focus on key players to define their market value, share, and competitive landscape.
- Growth Trends Analysis: Examine individual growth trends and prospects in the Market.
- Market Contribution: Evaluate contributions of different segments to the overall Generative AI in IoT Market growth.
- Growth Drivers: Detail key factors influencing market growth, including opportunities and drivers.
- Industry Challenges: Analyze challenges and risks affecting the Generative AI in IoT Market.
- Competitive Developments: Analyze competitive developments, such as expansions, agreements, and new product launches in the market.

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